How Much Good News Is Already Priced In?
What’s in Today’s Report:
- How Much Good News Is Already Priced In?
- Weekly Market Preview: Focus remains on the global economic re-opening
- Weekly Economic Cheatsheet: Flash PMIs on Thursday are a big report
Futures are down more than 1% mostly on digestion of last week’s big rally, as the weekend was relatively quiet from a news standpoint.
WTI crude oil is down nearly 30% (not a typo) but that decline is about logistics, as there are fears of not enough storage in the U.S. for looming oil imports. Conversely, Brent crude is down only 3%. Point being, the declines are being driven by a logistical issue, not a fresh reduction in demand (i.e. lower than expected economic growth).
Economic data was sparse overnight, as German PPI fell slightly more than expected (-0.8% vs. (E) -0.7%).
Today there are no economic reports so focus will remain on “reopening” news, as the pace of normalization of the U.S. and global economy will decide whether stocks can hold last week’s gains.
